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Daily Technical Strategist

EURUSD: Correcting With Eyes On The 1.3330 Level and Beyond

Fri, Mar 27 2009, 14:26 GMT
by Mohammed Isah

FXTechstrategy  |  View company's profile

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HIGHLIGHTS:

-EURUSD: Correcting With Eyes On The 1.3330 Level and Beyond - EUR remains on the defensive reversing its one-day gain on Wednesday and cutting through its minor support at 1.3419 level, its Mar 25’09 low and another key support at the 1.3386 level, its Jan 19’09 high in early morning trading today.

-USDJPY: Still Maintaining Its Rally Off The 93.55 Level - The recovery started at the 93.55 level, its Mar 19’09 low suffered a temporary set back after the pair was seen reversing its Thursday gains in early trading today suggesting that correction to consolidation of the said rise may be building up.

EURUSD: EUR remains on the defensive reversing its one-day gain on Wednesday and cutting through its minor support at 1.3419 level, its Mar 25’09 low and another key support at the 1.3386 level, its Jan 19’09 high in early morning trading today. This price development now leaves the pair challenging its strong support at the 1.3330 level, its Jan 27’09 high/former range top where a cap is expected to turn off EUR thereby reversing higher again. This level preserves the pair’s short term uptrend activated off the 1.2456 level, its Mar 04’09 low and in order for the said uptrend to remain valid, EUR must hold above the 1.3330.If however that level snaps, declines should shape towards the 1.3093 level, its Feb 09’09 high and subsequently the 1.2992/1.3000 area, its Feb 23’09 high/psycho level. Daily Stochastics and RSI remain bearish as well, pointing towards further weakness. Alternatively, the 1.3419 level, its Mar 25’09 low and the 1.3386 level, its Jan 19’09 high will come in as the immediate upside targets with the 1.3635 level followed by the 1.3736 level, its Mar 23’09 high seen the next two resistance levels. Beyond there if seen will open up further upside risk towards the 1.3857/88 levels, its.618 Ret (1.4719-1.2330 declines)/Sept 11’08 high. On the whole, EUR rise off the 1.2456 level to the 1.3738 level is now undergoing corrective pullbacks with deeper correction targeting the 1.3330 level and beyond.

USDJPY: The recovery started at the 93.55 level, its Mar 19’09 low suffered a temporary set back after the pair was seen reversing its Thursday gains in early trading today suggesting that correction to consolidation of the said rise may be building up. While this occurs above its strong support at the 94.62 level ,its Jan’09 high, we envisage an eventual return to the 99.68 level with a break through there resuming its short term uptrend towards its psycho level/Nov 04’08 high at 100.00/55 or even higher. Its daily stochastics remains supportive of this view as it is trending higher. On the downside, objectives are located at the 96.58 level, its Mar 06’09 ahead of its Mar 12’09 low at 95.67. If that level is taken out, in any case, USDJPY would be set up for a dip towards the 94.62 level ,its Jan’09 high and next the 93.55 level, its Mar 19’09 low. All in all,USDJPY continues to retain s its upside bias triggered off the 93.55 level.

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Published on  Fri, Mar 27 2009, 14:34 GMT

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